Like many Property management professionals, we started out managing our own residential real estate. Some start out renting a basement or floor of their own home, and some decide to hold on to their first property when they move and rent it our instead of selling it to finance their second or subsequent property. One of the main reasons that people turn to residential real estate as an investment vehicle is that it is something they are familiar with, and in the recent past has proven to be a sound and lucrative return on investment.
In an article by David Israelson in The Globe and Mail, he outlines the experience of one such homeowner turned residential real estate investor:
“For more than two decades, Ms. Leahy has followed a sometimes risky but lucrative self-investment strategy, buying, selling and managing residential properties in Ontario and Western Canada. She and her husband started by taking in a tenant at their first home in Toronto. Our first experience was a nightmare,” she says. Undaunted, Ms. Leahy kept trying, while her husband concentrated on his paramedic work. Right now Ms. Leahy holds four residential properties, or “doors” as she calls them, in Edmonton, Fort McMurray, Alta., Orillia, Ont., and Cornwall, Ont. “We invest in cash flowing properties based on economic fundamentals,”
Although we concur 100% with the validity of residential real estate as an investment vehicle, we don’t necessarily agree that managing those properties yourself is for everyone. For some their busy lifestyles prevent them from providing proper maintenance and repair to the properties. As well their inexperience in interviewing and managing tenants can lead to issues in the future. The best way to utilize the power of residential real estate as an investment and maximize your ROI is to employ the service of an experienced, qualified property manager.
At Real Estate Management Toronto (a division of Northern Property Rentals) we have over 20 years of experience in the Toronto and GTA real estate market. Give us a call to find out how our experience can work for you. We are used to dealing with small and first time investors and can design a service package to fit almost any budget or situation.